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24 Sep 2025 07:00
24 September 2025
Borders & Southern Petroleum plc
("Borders & Southern" or the "Company")
Unaudited Results for the six-month period ended 30 June 2025
Borders & Southern Petroleum plc (AIM: BOR) announces its unaudited half year financial statements for the six months to 30 June 2025. The accounts contained within this report represent the consolidation of Borders & Southern Petroleum plc and its subsidiary Borders & Southern Falkland Islands Limited.
Highlights
· Operating loss for the period was $441,000 (2024: $578,000)
· Cash balance on 30 June 2025 was $3.2 million (31 December 2024: $2.09 million)
· Successfully raised £2.2 million to continue to advance the Darwin discovery towards appraisal
· Darwin farm out progressing, aided by improved industry sentiment towards upstream assets and the progress of the Sea Lion field in the North Falklands
Chief Executive's Statement
It's been four months since my last Chairman and CEO review and I'm very pleased to report that everything is progressing as planned.
During the first half of 2025 we have continued to move our farm out discussions forward. Darwin continues to elicit fresh and renewed interest from potential tier one industry partners and we are delighted with the progress that Houlihan Lokey, the investment bank we appointed to run the farm out process, is making.
We are not only blessed with licences of a quality, scale and optionality that attract major oil companies, but we are lucky enough to be operating within a regime which offers highly competitive fiscal terms and a government executive that is seeking and looking to open up the Falkland Islands as a new hydrocarbon producing basin. We enjoy a very healthy working relationship with the Falkland Islands' Government and look forward to the next phase of that relationship and the development of the Darwin project.
The first half of 2025 saw us further strengthen our balance sheet. We raised £2.2m (before costs) from institutional and private investors and we are very grateful for their continuing support. The funds raised will be used to fund the Company's licence fees, the discovery area fees, technical and commercial studies and generaland administrative expenses. Following the fundraise the Company has sufficient funds to cover its expected overheads until the end of 2026, considerably strengthening the Company's position as we seek an appropriate development partner. It is worth noting that the 10p warrants which were issued as part of the transaction are already in the money and have started to be exercised.
We have noticed the continued positive statements from Navitas with regards to the Sea Lion development and recent fundraisings by both Navitas and Rockhopper. Final investment decision on Sea Lion is expected in Q4 of this year and this will undoubtedly be a major catalyst for the Falkland Islands basin and thus ourselves.
After years of under investment in the sector, there have been many recent reports by oil and gas companies and large consulting firms that capital investment is moving back into upstream development projects to support future earnings and growth. A recent report from the International Energy Agency has highlighted the historical under investment in new projects and an over reliance on shale oil and gas. The world's major oil fields are declining at a faster rate than previously thought. New investment is needed to replace these declining fields.
Darwin is a an exceptionally low risk project with compelling economics. We are confident we will complete the partner process in due course for the benefit of all stakeholders. I would like to take this opportunity to thank all shareholders for their continued support and I very much look forward to the remainder of the year ahead and providing further updates on our progress.
Harry Baker CEO 23 September 2025
For further information, please visit www.bordersandsouthern.com | ||||||||||||||||||||||
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Notes to Editors:
Borders & Southern Petroleum plc (AIM: BOR) is an oil & gas exploration company listed on the AIM Market of the London Stock Exchange. The Company operates and has a 100% interest in three Production Licences in the South Falkland Basin covering an area of nearly 10,000 square kilometres. The Company has acquired 2,517 square kilometres of 3D seismic and drilled two exploration wells, making a significant gas condensate discovery with its first well.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014, which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2025
| 6 months ended 30 June 2025 (unaudited) | 12 months ended 31 Dec 2024 (audited) | 6 months ended 30 June 2024 (unaudited) | |
Notes | $000 | $000 | $000 | |
| ||||
Administrative expenses | (608) | (1,159) | (581) | |
|
| |||
LOSS FROM OPERATIONS | (608) | (1,159) | (581) | |
| ||||
Finance income | 168 | 15 | 6 | |
Finance costs | (1) | (73) | (3) | |
|
| |||
LOSS BEFORE TAX | (441) | (1,217) | (578) | |
Tax expense
|
-
|
- | - | |
LOSS FOR THE PERIOD AND TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY OWNERS OF THE PARENT |
|
(441) |
(1,217) |
(578) |
|
| |||
Loss per share - basic and diluted | 2 | (0.05) cents | (0.16) cents | (0.08) cents |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2025
| At 30 June 2025 (unaudited) $000 | At 31 December 2024 (audited) $000 | At 30 June 2024 (unaudited) $000 | |
ASSETS
NON-CURRENT ASSETS |
|
| ||
Property, plant and equipment | 7 | 10 | 7 | |
Intangible assets | 3 | 294,787 | 294,269 | 293,874 |
Total non-current assets | 294,794 | 294,279 | 293,385 | |
CURRENT ASSETS |
| |||
Other receivables | 4 | 626 | 1,090 | 103 |
Cash and cash equivalents | 3,199 | 2,090 | 756 | |
TOTAL CURRENT ASSETS |
3,825 |
3,180 |
859 | |
TOTAL ASSETS |
298,619 |
297,459 |
294,740 | |
|
| |||
LIABILITIES CURRENT LIABILITIES |
| |||
Trade and other payables | 5 | (90) | (1,181) | 366 |
TOTAL LIABILITIES | (90) | (1,181) | 366 | |
|
| |||
TOTAL NET ASSETS | 298,529 | 296,278 | 295,106 | |
|
| |||
EQUITY |
| |||
Share capital | 12,533 | 12,456 | 11,155 | |
Share premium Other reserve | 313,592 1,851 | 310,977 1,851 | 310,541 1,778 | |
Retained deficit | (29,431) | (28,990) | (28,351) | |
Foreign currency reserve | (16) | (16) | (17) | |
|
| |||
TOTAL EQUITY | 298,529 | 296,278 | 295,106 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2025
Share capital
$000 | Share premium
$000 | Other reserve $000 |
Retained Deficit
$000 | Foreign currency reserve
$000 | Total
$000 | |
Unaudited | ||||||
Balance at 1 January 2025 | 12,456 | 310,977 | 1,851 | (28,990) | (16) | 296,278 |
Total comprehensive loss for the period | - | - | - | (441) | - | (441) |
Issue of shares | 77 | 2,615 | - | - | - | 2,692 |
Balance at 30 June 2025 | 12,533 | 313,592 | 1,851 | (29,431) | (16) | 298,529 |
Audited | ||||||
Balance at 1 January 2024 | 11,155 | 310,541 | 1,778 | (27,773) | (16) | 295,685 |
Total comprehensive loss for the year | - | - | - | (1,217) | - | (1,217) |
Share Issue | 1,301 | 436 | 73 | - | - | 1,810 |
Balance at 31 December 2024 | 12,456 | 310,977 | 1,851 | (28,990) | (16) | 296,278 |
Unaudited | ||||||
Balance at 1 January 2024 | 11,155 | 310,541 | 1,778 | (27,773) | (16) | 295,685 |
Total comprehensive loss for the period | - | - | - | (579) | - | (579) |
Share Placement | - | - | - | - | - | - |
Balance at 30 June 2024 | 11,155 | 310,541 | 1,778 | (28,352) | (16) | 295,106 |
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2025
|
| 6 months ended 30 June 2025 (unaudited) | 12 months ended 31 December 2024 (audited) | 6 months ended 30 June 2024 (unaudited) |
Cash flow from operating activities |
| $('000) | $('000) | $('000) |
Loss before tax Adjustments for: |
| (441) | (1,217) | (578) |
Depreciation | 3 | 6 | 1 | |
Share-based payment | - | 73 | - | |
Finance Income | (168) | (15) | - | |
Finance costs | 1 | 73 | (3) | |
Cash flows used in operating activities | (605) | (1,080) | (580) | |
| ||||
Decrease/ (increase) in trade and other receivables | 464 |
(926) |
61 | |
(Decrease)/ increase in trade and other payables | (1,093) | 1,025 | (523) | |
Net cash outflow from operating activities | (1,234) | (981) | (1042) | |
| ||||
Cash flows used in investing activities |
| |||
Purchase of tangibles fixed assets | - | (8) | - | |
Purchase of intangible fixed assets | (518) | (528) | (133) | |
Interest received | - | 15 | - | |
Net cash used in investing activities | (518) | (521) | (133) | |
|
| |||
Cash flows from financing activities |
| |||
Share issue | 2,693 | 1,737 | 783 | |
Net cash generated from financing activities | 2,693 | 1,737 | 783 | |
Net (decrease)/ increase in cash and cash equivalents |
941 |
235 |
(859) | |
| ||||
Cash, cash equivalents and restricted use cash at the beginning of the period | 2,090 | 1,928 | 1,928 | |
Exchange gains/loss on cash and cash equivalents | 168 | (73) | (3) | |
Cash, cash equivalents and restricted use cash at the end of the period | 3,199 | 2,090 | 756 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2025
1. Basis of preparation
The unaudited condensed consolidated interim financial statements have been prepared using the recognition and measurement principles of International Accounting Standards, International Reporting Standards and Interpretations as applied in accordance with the provisions of the Companies Act 2006. The Group has not elected to comply with IAS 34 "Interim Financial Reporting" as permitted. The principal accounting policies used in preparing the interim financial statements are unchanged from those disclosed in the Group's Annual Report for the year ended 31 December 2024 and are expected to be consistent with those policies that will be in effect at the year end.
The condensed financial statements for the six months ended 30 June 2025 and 30 June 2024 are unreviewed and unaudited. The comparative financial information does not constitute statutory financial statements as defined by Section 435 of the Companies Act 2006. The comparative financial information for the year ended 31 December 2024 is not the company's full statutory accounts for that period. A copy of those statutory financial statements has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified and did include references to any matters to which the auditors drew attention by way of emphasis relating to going concern without qualifying their report and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.
For the six-month reporting period up until 30 June 2025, Borders & Southern had a loss from operations of $441,000 (a loss for the same period in 2024 was $578,000). Administrative expenses were $608,000 (2024: $581,000). The cash balance at the 30 June 2025 was $3.2 million compared with a balance of $0.76 million at 30 June 2024.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Company's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the 2024 Annual Report, a copy of which is available on the Company's website: www.bordersandsouthern.com. The key financial risks are access to capital and market volatility risk.
Critical accounting estimates
The preparation of condensed interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in Note 2 the 2024 Annual Report. The nature and amounts of such estimates have not changed significantly during the interim period.
2. LoSS per share
The calculation of the basic loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. Diluted loss per share is not stated as the result would be ant-dilutive given the loss in the period.
Loss after tax for the period $000 | Weighted average number of shares | Loss per share (cents) | |
Basic and diluted | |||
Six months ended 30 June 2025 (unaudited) | (441) | 878,456,911 | (0.05) |
Six months ended 30 June 2024 (unaudited) | (578) | 730,814,138 | (0.08) |
Twelve months ended 31 December 2024 (audited) | (1,217) | 753,828,155 | (0.16) |
3. INTANGIBLE ASSETS
The movement in capitalised exploration and evaluation costs during the period was as follows:
| Exploration and evaluation costs $000 |
Cost As at 1 January 2025 |
294,269 |
Additions | 518 |
As at 30 June 2025 | 294,787 |
Net book value As at 1 January 2025 |
294,269 |
As at 30 June 2025 | 294,787 |
4. OTHER RECEIVABLES
| 30 June 2025 $000 | 31 December 2024 $000 |
Current Other receivables |
81 |
68 |
Prepayments | 545 | 1,022 |
Total | 626 | 1,090 |
5. TRADE AND OTHER PAYABLES
| 30 June 2025 $000 | 31 December 2024 $000 |
Trade payables | 62 | 1,036 |
Other taxes and social security | 18 | 17 |
Accruals | 10 | 128 |
Total | 90 | 1,181 |
6. POST BALANCE SHEET EVENTS
There have been no significant post balance sheet events.
-ends-
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